And no, not in that way either! A lot of people reading this have probably already blown an account. Some of you haven’t and still need to be deflowered, and that’s okay. Whatever your situation is, you are welcome here.
Newbie trader, this one is for you and maybe a couple of traders who still aren’t too sure of their trading skills or whether or not their strategy still works!
Here is one thing we should always remember about the Forex markets – the Forex markets are a game of probabilities and as much as we want to win every single trade, unfortunately, it is merely impossible. IMPOSSIBLE!
Often as a Forex trader, the first thing you want to do is just make money without really looking at the reasons why you may not be making money, or rather the reasons for losing trades.
Now, don’t get me wrong it is vital to focus your attention on having great winners, but it is equally important to focus on the small losses…
In this game, it’s important not to have eyes bigger than your stomach. Don’t take on risk you can’t stomach. I heard of a trader called Jason Leavitt on a “Chat with Traders” podcast some years back who said at the beginning of his trading career he could’ve been trading $50,000 account and have one trade floating an $8000 loss without phasing him.
Trading, like anything in life, needs practice if you want to become good at it. Luckily, with modern technology, there are ways to practice without spending any real money. Without the added risk, trading a demo can help traders hone their skills and become better by first losing fake money and not real money.
Do you remember the housing market crash in 2007 and the financial crisis that followed in 2008?? Like myself, you may have been too young to understand what was going on.
BUT those who worked for Lehman Brothers, and other major banks, will never forget it.